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Licence agreements usually end because the term expires, but sometimes they end because one of the parties does something to give the other cause to terminate the agreement for breach of contract. Th is is when all the lawyers start turning to the back of the contract to the ‘miscellaneous’ clauses no one wanted to look at when the licence agreement was being negotiated. Well-draft ed licence agreements have comprehensive provisions setting out what events will amount to a breach of the contract and what happens if a breach occurs. Most licences give the licensee some ‘days to cure’ should they make a mistake, but some events, such as the licensee’s insolvency, bankruptcy or any failure to deliver accounting statements on time, will usually give the licensor the right to terminate the licence immediately. Usually, termination for breach will also annul any sell-off period. At the end of any licence deal, the licensee should always be obliged to destroy manufacturing parts and provide a sworn statement (a certifi cate of destruction) verifying that it was done. If there is a sell-off period, then the licensee may continue to sell remaining stocks at full price. Once the sell-off period ends, the licensee should have to destroy any remaining stocks and provide a certifi cate of destruction. Usually, video masters will be deleted, or sent to the new licensee.

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